2008 (9) TMI 409 - AT - Income Tax

Tribunal affirms deletion of tax additions on gifts under section 68 based on genuine evidence

Assistant Commissioner Of Income-Tax. Versus Ujjagar Singh Oberoi.

The Tribunal upheld the CIT(A)'s decision to delete additions made on account of gifts taxed under section 68 of the Act. The assessing authority had ... Genuineness Of Gift Issues involved: Appeal against deletion of addition made on account of gifts taxed u/s 68 of the Act due to lack of proof of genuineness and creditworthiness of donors.Summary:The Revenue challenged the deletion of addition made on account of gifts taxed u/s 68 of the Act by the learned CIT(A). The assessee had shown gifts received totaling Rs. 16,41,080 from various donors, including NRIs. The assessing authority deemed the gifts as bogus due to defects in the affidavits provided by the assessee. However, the CIT(A) found the gifts to be genuine based on the evidence produced, such as affidavits, confirmation letters, IT returns, and other supporting documents. The Revenue contended that despite evidence, defects in the affidavits persisted. The authorized representative highlighted various documents supporting the gifts' authenticity, including passports, IT returns, confirmation letters, and photographs with donors. The Departmental Representative confirmed that no additional evidence was obtained to counter the assessee's submissions. The Tribunal noted that the assessing authority solely doubted the undated affidavits, while other evidence like confirmation letters and IT returns were not questioned. The Tribunal observed a close relationship between the assessee and donors, supported by documentary evidence. The assessing authority did not utilize available powers to verify the genuineness of the gifts, and the CIT(A) deleted the addition after considering all evidence. Consequently, the Tribunal upheld the CIT(A)'s decision to delete the additions, dismissing the Revenue's appeal.